Emaar plans benchmark bond

Emaar Properties, builder of the world's tallest building, plans to issue a benchmark dollar-denominated bond as part its $2 billion Islamic bond programme, according to a source familiar with the matter.

The pricing of the five-and-a-half year Islamic bond or sukuk, is expected to be on Thursday, a document from the source said.

Benchmark bonds are typically at least $500 million in size.

Two other market sources said market talk was of an 8.5 per cent yield. One of the sources said the bond would be worth $500 million.

Emaar picked HSBC, RBS and Standard Chartered to arrange fixed income meetings ahead of a possible bond issue, the developer said last week.

The meetings for the proposed bond issue began on January 21.

The company issued a five-year $500 million convertible bond last year with coupon of 7.5 per cent to refinance short term liabilities.